As the one-year lock-in period for Zomato’s pre-IPO investors came to an end on Monday. Shares of the online platform for restaurant discovery and meal delivery, Zomato sunk by almost 11% and reached a new record low.
As of 3:00 pm, the stock was down 11.28% at Rs 47.60 INR.
Food aggregator Zomato stock share is currently trading more than 70% below its all-time high. On November 16, 2021, it reached an all-time high of Rs 169.10. The shares have decreased by more than 62% year to date. Compared to the previous finish of Rs. 56.75, the stock’s closing price was 7.58% down at Rs. 52.45. The company’s market value decreased to Rs 41,288.29 billion.
Zomato’s customers might be happy they are getting timely deliveries, but investors are quite disappointed. Zomato marked its fourth consecutive session of fall. Due to the lack of profitability, investor sentiment have been negatively affecting Zomato’s stock price. Major hotel and restaurant chains are also unhappy with the current food delivery aggregators. Because of their rising commissions, and they are expected to start leaving these applications in the future. Aside from this, several cities have seen an increase in competition, which could hurt Zomato’s earnings.
Zomato had a remarkable entry onto the stock market, with a market capitalization of Rs 1 billion. In comparison to the issue price of Rs. 76, the stock started at Rs. 116, a 52.63 percent increase on the NSE.
For the quarter ending December 31, 2021, the company reported a lowering of the consolidated net loss at Rs 63 crore. In the same period last year and in the September quarter before that, the company reported net losses of Rs 352.6 crore and Rs 429 crore, respectively.
Operational revenue increased by 82.47 percent to Rs 1,112 crore from Rs 609.4 crore in the same period last year.